The Finance Ministry is preparing to discuss soft loan measures with the Bank of Thailand to help exporters and importers affected by US President Donald Trump's tariff policies.
A ministry source who requested anonymity said Finance Minister Pichai Chunhavajira is set to hold discussions with the central bank regarding the provision of soft loans to ease liquidity for exporters and importers who may be affected by Trump's import tariff policies.
The discussions will also cover monetary policy, government bonds and the capital market, which may be affected by these tariff measures.
Deputy Finance Minister Julapun Amornvivat said the government will likely need to implement assistance measures for businesses affected by the US tariff hikes. However, it remains unclear when such measures will be introduced, as the actual impact is still difficult to assess due to the ambiguity surrounding US policy.
He said the trade negotiations with the US, scheduled for April 23, were postponed because of changes to details by the US side.
Regarding the potential impact of Trump's tariffs on economic growth this year, Mr Julapun said the ministry is maintaining its GDP growth target at 3%, as forecast by the Fiscal Policy Office in January, because the extent of the impact remains uncertain.
However, the government may need to implement additional mechanisms to help maintain this growth target, he said.
"There are still many unknown variables, and the GDP figures released by various research houses are only projections. Negotiations with the US are planned, and we don't know which sectors will be positively or negatively affected," said Mr Julapun.
On the fiscal side, preparation for a possible economic crisis resulting from Trump's tariffs requires government review of its budget to identify areas of potential savings or reallocations to stimulate the economy, he said.
If this effort proves insufficient, other options will be explored such as raising the public debt ceiling beyond 70% and expediting investments by state enterprises, said Mr Julapun.
Regarding government revenue collection, he said it remains on target. The Revenue Department has collected more income tax, particularly from value-added tax, due to previous stimulus measures.
Corporate income tax collection also remains healthy, but the impacts of the tariffs may become clearer by mid-2025, said Mr Julapun. New investment remains difficult to attract due to global uncertainty over Trump's policies, which has shaken investor confidence worldwide, he said.
In the first five months of the fiscal year (October 2024 to February 2025), the government collected net revenue of 996 billion baht, exceeding the target by 0.1% and up 0.5% from the same period last year.